NYSE:FLS

Stock Analysis Report

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Executive Summary

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Flowserve's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

FLS

-1.4%

US Machinery

-1.1%

US Market


1 Year Return

-39.2%

FLS

9.9%

US Machinery

15.6%

US Market

Return vs Industry: FLS underperformed the US Machinery industry which returned 13.3% over the past year.

Return vs Market: FLS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FLSIndustryMarket
7 Day3.9%-1.4%-1.1%
30 Day12.7%7.4%4.2%
90 Day1.4%10.9%6.3%
1 Year-37.5%-39.2%12.7%9.9%18.2%15.6%
3 Year-27.5%-31.7%23.4%14.4%39.6%30.4%
5 Year-29.6%-35.9%99.3%76.7%79.5%59.2%

Price Volatility Vs. Market

How volatile is Flowserve's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Flowserve undervalued compared to its fair value and its price relative to the market?

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLS ($29.95) is trading below our estimate of fair value ($54.24)

Significantly Below Fair Value: FLS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLS is poor value based on its PE Ratio (26.8x) compared to the US Machinery industry average (26.6x).

PE vs Market: FLS is poor value based on its PE Ratio (26.8x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: FLS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: FLS is good value based on its PB Ratio (2.3x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Flowserve forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLS's forecast earnings growth (28.5% per year) is above the savings rate (2.2%).

Earnings vs Market: FLS's earnings (28.5% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FLS's revenue (1.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FLS's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLS's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Flowserve performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLS has a large one-off loss of $121.1M impacting its June 30 2020 financial results.

Growing Profit Margin: FLS's current net profit margins (3.8%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: FLS's earnings have declined by 15.6% per year over the past 5 years.

Accelerating Growth: FLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLS had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Machinery industry average (-13.9%).


Return on Equity

High ROE: FLS's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Flowserve's financial position?


Financial Position Analysis

Short Term Liabilities: FLS's short term assets ($2.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: FLS's short term assets ($2.4B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: FLS's debt to equity ratio (80.8%) is considered high.

Reducing Debt: FLS's debt to equity ratio has reduced from 95.4% to 80.8% over the past 5 years.

Debt Coverage: FLS's debt is well covered by operating cash flow (20.9%).

Interest Coverage: FLS's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Flowserve current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FLS's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: FLS's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: FLS's dividends per share have been stable in the past 10 years.

Growing Dividend: FLS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.7%), FLS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FLS's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Robert Rowe (49 yo)

3.5yrs

Tenure

US$8,681,866

Compensation

Mr. Robert Scott Rowe has been Chief Executive Officer and President of Flowserve Corporation since April 1, 2017. Mr. Rowe served as Interim President of Flowserve Pumps Division at Flowserve Corporation ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD8.68M) is above average for companies of similar size in the US market ($USD5.60M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Rowe
President3.5yrsUS$8.68m0.089%
$ 3.5m
John Roueche
VP of Investor Relations & Treasurer8yrsUS$953.89k0.013%
$ 490.8k
Keith Gillespie
Senior VP & Chief Sales Officer4yrsUS$1.60m0.037%
$ 1.5m
Elizabeth Burger
Senior VP & Chief Human Resources Officer2.5yrsUS$1.69m0.0057%
$ 220.6k
Amy Schwetz
Senior VP & CFO0.67yrno datano data
Scott Vopni
VP & Chief Accounting Officer0.33yrno datano data
Tauseef Salma
Vice President of Marketing & Technology1.67yrsno datano data
Lanesha Minnix
Senior VP2.33yrsno data0.0039%
$ 152.0k
Lars Rosene
Vice President of Corporate Communications & Public Affairs7yrsno datano data
Kirk Wilson
President of Flow Control Division5.08yrsno data0.029%
$ 1.1m
Eric J. Gemeren
VP & Chief Transformation Officerno datano datano data
Sanjay Chowbey
President of Aftermarket Services & Solutions1.25yrsno data0.0013%
$ 48.7k

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: FLS's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Rowe
President3.5yrsUS$8.68m0.089%
$ 3.5m
John Garrison
Independent Director2yrsUS$240.04kno data
Roger Fix
Independent Non-Executive Chairman3.42yrsUS$350.04k0.013%
$ 518.5k
Gayla Delly
Independent Director12.75yrsUS$235.04k0.0040%
$ 155.5k
John Friedery
Independent Director13.17yrsUS$235.04k0.0082%
$ 319.3k
David Roberts
Independent Director8.92yrsUS$240.04kno data
Ruby Chandy
Independent Director3.42yrsUS$230.04k0.0020%
$ 77.2k
Sujeet Chand
Independent Director0.83yrUS$5.44k0.00077%
$ 30.0k
Carlyn Taylor
Independent Director0.17yrno datano data
Michael McMurray
Independent Director2yrsUS$235.04kno data

3.4yrs

Average Tenure

59yo

Average Age

Experienced Board: FLS's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Flowserve Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flowserve Corporation
  • Ticker: FLS
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$3.898b
  • Shares outstanding: 130.16m
  • Website: https://www.flowserve.com

Number of Employees


Location

  • Flowserve Corporation
  • 5215 North O'Connor Boulevard
  • Suite 2300
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1980
FWVDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
0IQELSE (London Stock Exchange)YesCommon SharesGBUSDJan 1980
FLS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1980
F1LS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:40
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.